Building a More Resilient and Sustainable World

The document argues that the current model of managing catastrophic risk is unsustainable, as it relies heavily on government backstops while corporate resiliency has been eroded by a focus on short-term shareholder returns. It proposes a 'Societal Risk Compact' to better share and mitigate risk and calls for a new common language to prioritize long-term resiliency in corporate and investor agendas.

• The current global model for managing catastrophic perils is unsustainable because it relies on governments to bear the brunt of growing protection gaps, which has severely strained public finances. Before the COVID-19 pandemic, the global insurance protection gap—the difference between economic and insured losses—had already exceeded $1 trillion.
• Corporate resiliency has been eroded by a prioritization of near-term shareholder returns over long-term stability. This is evidenced by a fivefold increase in share repurchases over the last decade and a nearly 80% decline in the percentage of free cashflow allocated to R&D and capital expenditure.
• The report proposes a 'Societal Risk Compact' where government assistance for companies could be made contingent on those firms demonstrating tangible investments in preventative actions and public disclosures of their catastrophic risk exposure.
• The insurance industry is uniquely positioned to improve the speed and efficiency of disaster relief due to its existing payment rails, customer relationships, and loss-adjustment capabilities. The 2011 Tōhoku earthquake is cited as a successful example where public-private coordination led to over 90% of claims being settled within 90 days.
• There is a critical lack of standardized language and metrics to justify investments in resiliency to investors and regulators, often leading to a focus on short-term efficiency. The report suggests using the existing ESG (environmental, social, and governance) framework as a potential roadmap for standardizing resiliency disclosures.
• Asset managers and insurers, who control over $90 trillion in discretionary assets under management, should use their influence to ensure resiliency is prioritized in corporate strategic decision-making and capital allocation.

APA

World Economic Forum (2020). Building a More Resilient and Sustainable World. http://www3.weforum.org/docs/WEF_Building_a_More_Resilient_and_Sustainable_World_2020.pdf

Chicago

World Economic Forum. Building a More Resilient and Sustainable World. 2020. http://www3.weforum.org/docs/WEF_Building_a_More_Resilient_and_Sustainable_World_2020.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Building a More Resilient and Sustainable World |date=August 2020 |url=http://www3.weforum.org/docs/WEF_Building_a_More_Resilient_and_Sustainable_World_2020.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2020building, author = {{World Economic Forum}}, title = {{Building a More Resilient and Sustainable World}}, institution = {World Economic Forum}, year = {2020}, month = aug, url = {http://www3.weforum.org/docs/WEF_Building_a_More_Resilient_and_Sustainable_World_2020.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }